Defence spending, interest on debt absorb three-fourths of revenues

KARACHI (April 05, 2009): Defence spending and interest costs on country's rising debt are absorbing three-fourth of the revenues, says the State Bank of Pakistan. The second quarterly report on the economy, issued by SBP, on Saturday also said that due to sharply constrained access to international capital markets as well as slower deposit growth in banks, the domestic interest rates will be more sensitive to government funding demands through the volume-based auctions of government paper.